U.P.State Electricity Board vs Banaras Electric Light & Power Co.Ltd

The Supreme Court addressed the liability of the U.P. State Electricity Board under the Electricity (Supply) Act, 1948, specifically interpreting Sections 6 and 7(A) of the Indian Electricity Act and the Indian Electricity (Uttar Pradesh Amendment and Validation) Act, 1975. The Court held that the Board, having taken over the undertaking, was required to pay the liquidators of the Banaras Electric Light & Power Co. Ltd. the amount collected from consumers for electricity supplied prior to the takeover, affirming that the Board acted as an agent and trustee for the liquidators. The appeal by the Board was dismissed, confirming the lower court's ruling.